October 3, 2018 / 11:00 PM / 8 months ago

UPDATE 1-Brazil exchange operator B3 to pay fine in agreement with regulator

(Adds details on the agreement)

SAO PAULO, Oct 3 (Reuters) - Brazil’s stock exchange operator B3 SA reached an agreement on Wednesday with the country’s antitrust regulator Cade to pay a fine over practices that could have impeded new competitors, according to a securities filing.

B3 will pay a fine of 9.4 million reais ($2.4 million). As part of the agreement, Cade will suspend an ongoing probe into the practices for five years, the statement said.

B3 is the only stock exchange in Brazil and enjoys a near monopoly on all trading, clearing and settlement services for most locally-traded shares.

As part of its agreement, it will have to comply with some obligations over the next five years that could help competitors start rival exchanges.

Cade determined that contracts signed between B3 and rivals should last at least three years. B3 should also allow companies to test its clearing and settlement platforms, according to Cade.

The probe started in 2016 after local exchange operator ATS Brasil and its parent filed a complaint with Cade alleging B3 was making it tougher for rivals to enter the country.

Their plans included having their own trading platform, but using B3’s post-trading platform to settle and clear equities trading. ($1 = 3.9012 reais) (Reporting by Carolina Mandl Editing by Leslie Adler and Rosalba O’Brien)

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